Amazon is said to be in talks to purchase Globalstar, a key player in the satellite connectivity capabilities of Apple’s iPhone and Apple Watch. This possible acquisition is made more complex by Apple’s notable 20% ownership in Globalstar, which was assessed at around $400 million upon its acquisition in November 2024. Additionally, Apple invested $1.1 billion in upfront payments to improve Globalstar’s satellite infrastructure.
Since Apple’s investment, Globalstar has experienced a noteworthy rise in valuation, potentially increasing the worth of Apple’s share to about $1.1 billion, corresponding with its prepayment for services. At present, Apple leverages Globalstar’s technology for the Emergency SOS via satellite functionality on iPhone 14 and newer models, as well as the Apple Watch Ultra 3. This feature is vital for users requiring a connection to emergency services when traditional cellular networks are not available.
Amazon’s pursuit of Globalstar fits into its larger plan to create a competitive satellite internet service, named Amazon Leo, which was previously known as Project Kuiper. This venture seeks to compete with SpaceX’s Starlink, which has already made major advancements in offering satellite internet access.
The discussions between Amazon and Apple underscore the intricacies of corporate acquisitions, especially when there are existing alliances and investments in play. As the satellite communication sector continues to progress, the results of these negotiations could significantly impact both corporations and their respective technologies.